In the last few months we’ve experienced major fluctuations in input costs and availability due to Russia’s invasion of Ukraine, skyrocketing energy prices in Europe, and suppressed production in China due to their zero COVID policy. Domestically, we’ve faced rapid inflation, large interest rate hikes, and record high gas and diesel prices. After more than 2 years of market swings, volatility has become the new normal.
Total industrial production increased again in April for the fourth consecutive month. All major sectors saw growth, with manufacturing increasing 0.8%. The increase for durable goods manufacturing was helped by strong increases in motor vehicles and parts production.
The cost to ship material and products on trucks continues to climb as freight rates hit a new all time high. There was a 31.0% increase year-over-year in April. The lingering COVID situation, labor constraints, and limited truck capacity has negatively impacted pricing recently.
The April consumer price index came in at 289.1, up 8.26% from last April. Although this is still elevated, it is lower than March’s all-time high of an 8.54% year-over-year increase. Airline fares saw the largest 1-month increase in history. Prices also continued to rise for housing, lodging away from home, and new vehicles. There were a few components that saw slight declines in pricing including apparel, communication, and used vehicles.
The need for Zinc and corrosion resistant steel is greater than ever before. We break down Zinc’s recent rapid price movement and why we think demand will continue to grow.
Construction spending continued is now up for the thirteenth consecutive month. Although non-residential projects slipped slightly, the increase in residential construction spending was enough to overcome that decline. Residential construction spending made up 51.5% of total construction spending, the highest percentage since mid-2006.
Import and domestic supply tightens straining an already fragile steel market.
Construction spending in March increased for the 13th consecutive month, coming in at a $1.730 trillion dollar rate. While non-residential spending slipped slightly, residential spending increased enough to overcome the decline. Residential construction spending came in at a new all-time high of an $891.3 billion rate. This accounted for 51.5% of total spending, the highest percentage since mid-2006.
